Raydium operates as an automated market maker (AMM) and liquidity provider established on the Solana blockchain, specifically catering to the Serum decentralized exchange (DEX). Distinguished from other AMMs, Raydium facilitates on-chain liquidity to a central limit order book, wherein funds deposited into Raydium are transformed into limit orders incorporated within Serum's order books. Consequently, Raydium liquidity providers (LPs) gain access to Serum's entire order flow and pre-existing liquidity. The native utility token, RAY, serves several purposes, including: Staking to earn protocol fees. Staking to receive allocations in initial DEX offerings (IDO). Participation in governance votes concerning protocol decisions.